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Calley signs remaining personal property tax reform bills aimed at ensuring stable local funding, creating jobs

Bipartisan laws supported by local governments, schools and businesses 

Tuesday, April 1, 2014

GRAND RAPIDS, Mich. – Lt. Gov. Brian Calley today signed the remaining eight bills of a bipartisan package of legislation that provides more stable local government revenue for essential services, including police and fire protection, as the obsolete, job-killing personal property tax is phased out. 

Gov. Rick Snyder signed the other three bills last week before leaving on an international trade mission to Europe. 

The changes are supported by a broad coalition of local government, school and business organizations, and will provide an estimated 100 percent reimbursement to municipalities for lost personal property tax revenue. 

Currently, a municipality’s personal property tax revenue can be significantly impacted by the loss of an employer. This package offers more financial stability to municipalities as they provide services that enhance the quality of life for all Michiganders. 

“Michigan is the comeback state, and these reforms will help our businesses grow and provide our communities with stable revenue for essential services, like police and fire protection, that improve the quality of life for all Michiganders,” Calley said. “The personal property tax hurt our Michigan companies and made the state less attractive to job-providers seeking a place to locate. This bipartisan package of bills will encourage job creation and help our communities and our businesses thrive.” 

The changes will require voter approval. 

The bills Calley signed today are: 

Senate Bill 821, sponsored by state Sen. Jack Brandenburg, replaces the Michigan Metropolitan Areas Metropolitan Authority Act with the Local Community Stabilization Authority Act and revises the distribution of local use tax revenue. It is now Public Act 86 of 2014. 

SB 823, sponsored by state Sen. John Proos, amends existing law that allows for the extension of PA 328 exemptions to ensure that if the new local reimbursement plan is presented to the voters and isn’t approved, the extension provision would be repealed. It is now PA 87. 

SB 824, sponsored by state Sen. John Pappageorge, amends existing law to transfer the duties of the Metropolitan Extension Telecommunications Rights of Way Oversight Authority to the Local Community Stabilization Authority. It is now PA 88. 

SBs 826, 827 and 828, sponsored by state Sens. Mark Jansen, Steve Bieda and Jim Ananich, respectively, amend existing laws that create the manufacturing and small taxpayer PPT exemptions to ensure that if the new local reimbursement plan is presented to the voters and isn’t approved, the exemptions would be repealed. The bills are now PAs 89-91. 

SB 829, sponsored by state Sen. Rebekah Warren, repeals the Local Unit of Government Essential Services Special Assessment Act and creates the State Essential Services Assessment Act, which provides for the levy of an assessment to fund essential services on personal property that is subject to the manufacturing exemptions. It is now PA 92. 

SB 830, sponsored by state Sen. Mike Nofs, provides for the levy of an abated assessment on certain manufacturing personal property that receives an exemption from the state essential services assessment. It is now PA 93. 

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Article V Section 26 of the Michigan Constitution gives authority to the lieutenant governor when the governor is out of state.